Unions Say Detroit Can't Show It's Insolvent

Law360, New York (October 18, 2013, 3:35 PM EDT) -- Two of the unions representing Detroit's public-sector retirees told a U.S. bankruptcy judge Thursday that the city has failed to prove it is insolvent, making it ineligible for Chapter 9 bankruptcy protection.

That assertion is one of many in the unions' pretrial brief regarding the upcoming fight over whether Detroit should be permitted to pursue a municipal bankruptcy. The unions — the Michigan Council 25 of the American Federation of State, County & Municipal Employees, AFL-CIO, and Sub-Chapter 98, City of Detroit — are also arguing that...